Securing your life with your spouse beyond living QDRO 401K

By: Babin Stowe

Do you often stay awake at nights for the fear of having retirement nightmares? Are you in the prime of your life and relation and worrying about how to get things managed in the post retirement times? The good news is that the help is handy in the form of QDRO 401K. Chances are that you have heard of this. And chances are that you have not grasped the concept behind it. You let it go thinking of it as just another fancy term out there but this fancy term could mean the world to you and your partner and not just post retirement. QDRO stands for quality domestic relation order. And in the common parlance it is just a savings account plan for the retirement benefits of the employees. The QDRO 401K began somewhere in 1980s and has been a very competitive alternative to the traditional retirement plans. It allows planning the money wisely so that the couple is not faced with retirement blues. Even the tax calculation hassles and the gains and profits management is easy with this plan. So easy that, as even the employers are recommending and participating in this retirement scheme contributing some amounts on the behalf of their resources.
As opposed to general understandings, the QDRO 401K is essentially and largely a retirement plan. It has some rules to its operation by the account holder. As per the initial order, only after 59 and half years of age, could the contributor dare to withdraw the funds from the account. There are also penalties that come knocking if the money is withdrawn before the maturity period. Thus, used wisely, the QDRO 401K is quite a thoroughly benefitting investment plan. It secures your future financially. The monetary security gives you a great confidence to face your tomorrows with a smile, togetherness notwithstanding. You read it right. The plan lets you lead a quality life post divorce too and hence, the name quality domestic relation order.
The plan is designed to give a fixed amount of money to both the partners after retirement. The couples, who stay together, share the bliss and the returns of the plan too. But for the couple, who because of some unforeseen and unfortunate circumstances have to file for divorce, will get a pre-determined share of this plan. The division is guided by the expert decisions of judges and stands to the aid of the dependants and the children. The QDRO 401K is handy not only for monetary savings but also from the tax saving point of view. As such it stands a close scrutiny from the employer's side. And any deterioration in the domestic relation, affects the asset distribution in the plan. More so, if the separation comes before the maturity date of the plan. So the quality domestic relation order brings lot of harmony in the retirement days of the couple, since the money is so wisely planned and invested in QDRO 401K with such good returns. A wise step today can make up for a much better tomorrow, not just for you but for yours as well. This definitely cuts down the number of sleepless nights.

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